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3 Things To Understand About Modifying Your Mortgage Loan

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The government created a program called the Home Affordable Modification Program (HAMP), and this program is designed to help people save their homes from foreclosure. While not everyone qualifies to use this program, many people do, and it can be the perfect solution for you if you are struggling to pay your mortgage payments. If you are not familiar with this program, there are several things you should understand about it.

What it is

HAMP is designed to offer an opportunity to homeowners to modify their loans through a loan modification. A loan modification is something that allows you to modify the current terms of your loan without getting a new loan. In other words, it offers a way to change the principal balance, the interest rates, the length of the loan, and the payment amount.

Your first step if finding out if you qualify

While loan modifications offer a great solution for homeowners who are on the verge of losing their homes, they are not available to every homeowner. There are certain conditions you must meet in order to qualify, and it requires filling out a lot of paperwork correctly to qualify. One condition you must meet is that you must have purchased your home prior to the year 2009. Additionally, you must owe more on your house than the current value it is worth. You must also have proof that you are struggling to pay for this house. These are just some of the basic requirements you must meet if you are interested in a loan modification.

The benefits it offers if you qualify and use a loan modification

If you can get your lender to approve a loan modification, which is not always an easy task, you will benefit greatly from it. In most cases, a loan modification will reduce the principal balance that you owe on your house, and this can instantly give you more equity in the home. Secondly, it will reduce the amount of your payments. The problem with a loan modification is getting it approved, and it is always easy to do this if you hire a lawyer to help you.

If you are not sure if this is right for you or if you qualify for a loan modification, you should talk to a lawyer, such as Ellen K Lawson Attorney at Law PLC. There are lawyers who offer loan modification services, and these lawyers can help you figure out a plan that could help you save your house.